Foot Locker announced Monday that it will close more than 400 low-performing stores in shopping malls by 2026 as it shifts its focus to new concept stores.
The company’s new “Lace Up” business plan was revealed by executives at an investor day in New York City on Monday. The plan included opening free-standing shops targeting niche consumers such as sneakerheads, children and higher-income shoppers.
CEO Mary Dillon said Foot Locker is “revitalizing” its partnership with Nike, explaining that the companies have a “shared vision of the future marketplace, aligning on growth plans and key strategic areas like basketball, kids and sneaker culture,” Axios reported. Nike reduced the number of traditional retailers and websites it allowed to sell its products in recent years as it shifted more to a direct-to-consumer strategy.
“We’ve reestablished joint planning, as well as data and insight sharing so that we can better serve customers and the fruits of our renewed commitment to one another will begin to show up and holiday this year,” Dillon said.
There are about 1,300 Foot Locker stores in malls in North America, and the company expects to close as many as 420 by 2026 to shift its focus to better-performing stores. The company said it anticipates closing 25% of its locations in A- and B-rated malls and 50% of its stores in C- and D- rated malls.
“These 400 stores represent nearly 10% of our total sales,” senior vice president of store development Tony Aversa said.
Mall ratings reflect sales per square foot. Foot Locker displayed a presentation showing sales at A- and B-rated malls increased by 8% since 2019, according to Business Insider. Foot Locker said it intends to open more than 300 “new concept” stores by 2026. This includes shops located outside of malls. The company said it expects 50% of its revenue to come from outside of malls under the new business plan, a jump from the current 35%.
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